A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Overdraft Lending: Very Large Financial Institutions".

Summary

This joint resolution, S.J.Res.18 from the 119th Congress, disapproves a final rule issued by the Bureau of Consumer Financial Protection (CFPB) concerning overdraft lending practices for very large financial institutions. The rule in question, published in the Federal Register on December 30, 2024 (89 Fed. Reg. 106768), addresses overdraft lending by setting limits on fees, requiring clearer disclosures, and imposing other regulatory constraints on banks with over $10 billion in assets. By invoking the Congressional Review Act (CRA), this resolution seeks to nullify the CFPB's rule entirely, meaning it would have no legal force or effect if enacted. The CRA allows Congress to overturn recently finalized federal regulations by a simple majority vote in both chambers, followed by presidential signature. Since this is a joint resolution disapproving a rule (not proposing a constitutional amendment), it follows the standard legislative path: passage by both the House and Senate, then presentation to the President for approval or veto. If signed, the CFPB's overdraft lending rule would be vacated, reverting to the previous regulatory landscape for overdraft fees and practices at major banks. Proponents argue this prevents overreach by the CFPB and protects consumer access to credit, while opponents contend it removes vital consumer protections against predatory fees and undermines the agency's authority to regulate financial products. The resolution reflects broader partisan debates over financial regulation, the role of the CFPB, and the balance between consumer protection and industry flexibility in the wake of the 2008 financial crisis.

Where Each Party Stands

History